Fiat Chrysler today reported a net profit for 2015 of 377 million euros (nearly $410 million USD) representing a significant decrease over the 632 million euros it earned in 2014. The automaker also sold a total of 4.6 million cars and trucks in 2015, on-par with 2014 but less than the company’s expectations of 4.8 million.
According to the The Detroit News, recalls and other special charges cut heavily into FCA’s earnings in 2015. It spent an estimated 761 million euros ($850.2 million) on recalls in the third quarter alone and set aside another 834 million euros ($906.5 million) for an all-new strategic plan CEO Sergio Marchionne is expected to divulge later today.
FCA beat many analyst expectations with its 2015 results, mostly due to strong fourth-quarter sales. Its earnings mostly came from North America (thanks to the Jeep and Ram brands) with the company earning 60.7 percent more in the region in Q4 2015 than in Q4 2014.
North America will become an increasingly more important part of FCA’s business, with the automaker expected to announce a new 2014-2018 plan today that shifts focus away from China and Latin America and concentrates more heavily on North America and Europe. Marchionne was originally hoping to rid FCA of its 9.7 billion euros in debt and boost operating profit to 9 billion euros with the 2014-2018 plan, goals he says are still achievable under the revised plan.
FCA is forecasting net revenue of 110 billion ($120 billion) euros in 2016, with an operating profit of 5 billion euros ($5.4 billion), an adjusted net profit of 1.9 billion ($2.1 billion) and industrial debt of 5 billion ($5.4 billion).